Paul Arithi 
- Issuance of the Draft Climate Risk Disclosure Framework for the Banking Sector;
The Central Bank of Kenya (CBK) has released the draft Climate Risk Disclosure Framework via the link
https://www.centralbank.go.ke/climate/ClimateRiskDisclosureFramework.zip for public consultation. The draft Climate Risk Disclosure Framework is part of the CBK’s ongoing second-generation reforms aimed at greening the banking sector.
This initiative, along with the recently issued draft Kenya Green Finance Taxonomy, is part of the Greening Financial Systems Technical Assistance Programme to CBK by the European Investment Bank (EIB) that commenced in October 2023.
The Climate Risk Disclosure Framework intends to assist commercial banks in collating and disclosing climate-related information in a relevant, useful, consistent and comparable manner. For investors, the framework provides the information needed to assess the financial implications of climate change on potential investments and identify companies well-positioned for the transition to
a low-carbon economy.
The general public and other stakeholders will benefit from increased transparency, fostering accountability within the financial sector
and encouraging businesses to adopt more sustainable practices.
The Framework is aligned with global best practices and standards such as the International Financial Reporting Standards (IFRS) S2 on climate-related disclosures and Basel Committee on Banking Supervision (BCBS) principles on climate-related financial risks.
CBK is appreciating and receiving your comments or feedback on or before October 31, 2024. The Members of the Public are encouraged to share their comments through the online link: https://forms.office.com/r/0mmN2jCPUM.or through the Director, Bank Supervision via email fin@centralbank.go.ke
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